Tax implications on renovation of rental property

[Barry Long]

Are there any restrictions to continuing to take depreciation and interest deductions during a long term renovation of a rental property? 

[Ashish Acharya]

@Barry Long ,

Did your long term renovation start after you had already placed the rental in service? Meaning you rented a property for a year and then when the tenant moved out, you are doing this renovation. If yes, then you can continue your depreciation. The new renovation will be depreciated once it is done, as a separate asset. 

If you just bought the property and are doing this renovation to ready the property, then your depreciation has not really started. You will start depreciation when you are done renovating and place the rental house in service.